As some homeowners look for ways to keep more of their home’s equity for themselves, some turn to using discount real estate brokerages. Discount brokerages, as they are called, sound good in theory. You get the help of a real estate agent without having to give up the standard commission. However, there is more to the story. You get what you pay for with discount brokerages.
Discount brokerages are generally upfront about not providing all of the services that other real estate agents provide. This is how discount brokerages can justify making less on commission. Usually, a discount brokerage will earn one or two percentage points less on commission than standard brokers earn. Although this appears at first glance to be a “no frills” approach, you’re giving up more than frills. You’re giving up the benefit of having an ally with you throughout the entire process. You may receive partial help along the way, but consider the many projects that are part of selling a home: setting a price, preparing for sale, being available for showings, and negotiating a deal with the buyer. If you don’t have an agent with you for all of these, the progress of your sale is likely to suffer.
Even if you think that this sounds manageable, consider that your home will probably sell for less if you use a discount brokerage. You will most likely be able to accommodate fewer showings, you may have difficulty getting the word out about your home, and you will probably have greater difficulty negotiating a deal that takes into consideration every worthy aspect of your financial situation. If your home sells for less, it may nullify what you save in commission costs.
Instead of trying to save on commission, a better method is to hire an experienced Mississauga real estate agent who can help you sell your home at a higher price. An agent who is there for you all the way, who markets your home extensively and who negotiates expertly, will yield you the highest return. Call me at 905-502-1500 or visit www.mcdadi.com for more information.